Farm Mechanization - Tractor Loan


Purpose
  • For purchase of
      New Tractor with trailer and/or other farm machineries/implements
Eligibility
  • No minimum acreage need be insisted if the purpose is custom hiring for Agriculture/ Non-Agriculture. If usage for hiring purpose is more than the usage in farmer's own farm, it can be classified under custom hiring
  • Minimum 4 acres of irrigated land (or) 8 acres of unirrigated land/dry land in case of classification under regular farm credit other than custom hiring
  • Land holding in the name of family members who are blood related can also be considered
Eligible Amount
  • Tractors upto 120 HP
  • As per invoice from authorized dealers/distributors or MRP whichever is less
  • Min hours of use: atleast for 1000 hours per year
Maximum Loan Amount
  • 6 Lakhs
Rate of Interest
Please refer to Loan Interest Rates Page
Margin
  • Regular Farm Credit:
    a)Loans upto 1.00 Lakh : NIL
    b) Loans more than 1.00 Lakh :
    i. 5 % of the total Cost (if collateral security atleast equal to loan amount is offered)
    i. 10 % of the total Cost (if collateral security less than loan amount is offered)
    c) Loans more than 1.00 Lakh and up to 6.00 Lakhs : 25% of the total cost ( if no collateral security is offered)

  • Custom Hiring Purpose:
    Loans up to 6.00 Lakhs (Both Agri/non-agricutlure) : 15% of the total cost
Security
  • Under Tie-up with TAFE/TMTL Custom Hiring purpose - upto 6 Lakhs:
    a)Hypothecation of Vehicle purchased out of the loan amount
    b) Mortgage of land is not required
  • In all other cases:
    a) Hypothecation of Vehicle purchased out of the loan amount
    b) Mortgage of land worth value at least equivalent to 1.5 times of the loan amount
Guarantee
  • Suitable third party guarantee
Lien
  • Bank’s lien will be noted in RC Book.
Repayment Period
  • Maximum 7 years
Processing Charges
  • 50% waiver in applicable processing charges
How to apply
  • Please contact nearest Saptagiri Grameena Bank Branch for more details
Designed by Yaswanth Gupta Bondada & Raghav Vellore